If a Bank Has $500,000 in Checkable Liabilities, the Required

question 90

Multiple Choice

If a bank has $500,000 in checkable liabilities, the required reserve ratio is 10 percent, and the bank has $100,000 in reserves, then excess reserves are equal to

• A)$10,000.
• B)$25,000.
• C)$50,000.
• D)$100,000.

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Definitions:

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